Citi says chip selloff tied to CXMT DRAM concerns is overdone
SOXX•Citi expects CXMT’s planned 4F2 DRAM technology to have a limited effect on global memory-chip supply, saying mass production is unlikely before 2028. U.S. storage and memory stocks fell 1% to 2.3% in premarket trading.
1. Limited supply impact
Citi said CXMT’s planned 4F2 DRAM technology is being developed on its legacy 1y-nm node, with mass production unlikely before 2028. The bank said CXMT remains four generations behind leading DRAM producers and that manufacturing costs may be 10% to 20% higher.
2. Chip stocks fall
Reported technological progress by CXMT fueled concerns about increased competition from China’s AI players on Tuesday, driving losses in global chip stocks. The Philadelphia semiconductor index fell to its lowest in more than three weeks and logged a fifth straight session of declines; Micron Technology, Sandisk, Western Digital and Seagate Technology fell between 1% and 2.3% in premarket trading.
